Divorced? You Probably Still Need your Life Insurance

When a major life change occurs, like a divorce, it is highly recommended for you to sit down and review your life insurance policy. Many people think that when they become single, life insurance isn't as or at all necessary to them anymore. That isn't always so.

If you don't have children, if nobody else is relying on your support, and if you are now divorced, then life insurance is your need for life insurance isn't so great. The main purpose of life insurance is to protect the ones who rely on your income after you die. Sometimes, divorce can rapidly increase your need for life insurance, if, for example, you are now a single parent.

If you have children who are relying only on you after your divorce you:

• Want to ensure your child support
• Lose coverage that you previously had from your other spouse
• Have increased your financial obligations

This is happening very often nowadays. Because the number of single parents is so large, people's needs for life insurance increase, especially if you largely relied on your spouse's income. It is a good idea to speak with your insurance agent or a financial planner who can help you evaluate your coverage needs and options.

Beneficiary designations:

If your beneficiary is your ex-spouse, this means that he or she will be entitled to receive the proceeds after you die. You can avoid this by updating your beneficiary designations. For further assistance, make an appointment with your insurance agent, so that he/she may help you with the necessary paperwork.

Tips on purchasing life insurance:

• Shop around to find the best rates
• Check insurance company's ratings
• Find an experienced insurance agent to best assist you with your needs
• If you're concerned about cost of premiums, consider term life insurance
• Try purchasing group life insurance through your employer